[ELI5] Why are precious metals used in coins/currency when the denominations are so much lower than the price per ounce of said metal?

Question

I’m getting into precious metal stacking. It’s all pretty straightforward, but I can’t wrap my head around the logic in this

In: Technology

Answer 1

Precious metals are not used in the production of currency coins and have not been in decades. They are used in the production of collectors coins though, but those coins are not legal tender.